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FULLY OPERATIONAL  

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  • Question

    Is the additional costs added to IGCE as one additional entry to the Base and options total?

    Answer

    I know of no requirement to add additional costs to an IGCE. The IGCE is just a tool to help the contracting officer determine a fair and reasonable price at the time of contract award, which should already include prices for options. I know of no requirement to create a new IGCE to account for additional services authorized per FAR 52.217-8. Since that clause does not allow for any price adjustments, except when the Secretary of Labor revises prevailing labor rates, the prices have already been determined fair and reasonable when the original contract was awarded.
     
    Here's the actual clause: 
     
     
     
     
    52.217-8 -- Option to Extend Services.
     
     
    As prescribed in 17.208 <http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/17.htm#P183_30192> (f), insert a clause substantially the same as the following:
     
    Option to Extend Services (Nov 1999)
     
    The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within ______ [insert the period of time within which the Contracting Officer may exercise the option].
     


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